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The variances are squared so that all deviations above and below the mean become positive values. Taking the square root of the variance then gives a measure of the differences from the mean: the standard deviaton.
Squaring the deviations also makes the bigger differences stand out. Look at 100 squared vs 10 squared.
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Earn +20 ptsQ: Why are variances squared?
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Continue Learning about Math & Arithmetic
Using a pooled sample estimator for sigma squared assumes the two populations have what?
equal variances
What does activity-level variances plus flexible-budget variances equal?
total master-budget variances
What are adverse variances?
Adverse variances means unfavourable variance which is actual expenses are more than budgted variance.
Why are variances generally segregated in terms of a price variance and an efficiency variance?
Efficiency Varian materials and direct labor, the variances were recorded in specific general ledger accounts.
What does the F statistics tell you?
The difference between two variances
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